May 11, 2011
For more than a year, euro-zone leaders have complained that speculators betting on Greek (or Irish, or Portuguese) default are driving up sovereign-borrowing costs based on rumor and gossip. The official line remains that everyone's fiscs are under control and Greece will repay its bills in full and on time. So why won't financial markets take euro politicians at their word?
Allow recent events to illustrate: On Friday German news magazine Spiegel Online sent the euro tumbling when it reported that euro-zone leaders would gather that evening for a "secret crisis meeting in Luxembourg" to discuss a possible Greek exit from the euro.
The Journal's correspondents in Brussels attempted to verify the story by contacting Guy Schuller, the spokesman for Jean-Claude Juncker, who chairs meetings of the euro zone's finance ministers. On the Journal's "Real Time Brussels" blog, they recount that Mr. Schuller "repeatedly said no meeting would be held" on Friday night.
More
No comments:
Post a Comment